[Federal Register Volume 61, Number 132 (Tuesday, July 9, 1996)]
[Rules and Regulations]
[Pages 35915-35916]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17304]



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 Rules and Regulations
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  Federal Register / Vol. 61, No. 132 / Tuesday, July 9, 1996 / Rules 
and Regulations  

[[Page 35915]]



FEDERAL DEPOSIT INSURANCE CORPORATION

5 CFR Part 3201

RIN 3064-AA08, 3209-AA15


Supplemental Standards of Ethical Conduct for Employees of the 
Federal Deposit Insurance Corporation

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Federal Deposit Insurance Corporation, with the 
concurrence of the Office of Government Ethics (OGE), is amending the 
Supplemental Standards of Ethical Conduct for Employees of the Federal 
Deposit Insurance Corporation in order to allow employees' spouses and 
minor children to acquire otherwise prohibited securities when they are 
acquired as part of compensation packages in connection with their 
employment. The amendment is being made retroactively effective as of 
the effective date of the FDIC's supplemental standards.

EFFECTIVE DATE: May 25, 1995.

FOR FURTHER INFORMATION CONTACT: Richard M. Handy, Assistant Executive 
Secretary (Ethics), (202) 898-7271, in the Office of the Executive 
Secretary of the FDIC.

SUPPLEMENTARY INFORMATION:

I. Background

    On April 25, 1995, with the concurrence of OGE, the FDIC published 
as a final rule the Supplemental Standards of Ethical Conduct for 
Employees of the Federal Deposit Insurance Corporation which were 
effective May 25, 1995 (codified at 5 CFR part 3201). The final rule 
was issued to supplement OGE's Standards of Ethical Conduct for 
Employees of the Executive Branch that established uniform standards of 
ethical conduct for executive branch employees (effective February 3, 
1993, and codified at 5 CFR part 2635).
    Upon the determination of the Board of Directors and with the 
concurrence of OGE, part 3201 is being amended to provide an additional 
exception to the prohibitions on the ownership of securities of FDIC-
insured depository institutions. The amendment allows spouses and minor 
children of employees to acquire otherwise prohibited securities when 
they are acquired as part of compensation packages in connection with 
their employment. The Board of Directors determined that the provision, 
without the revised language, was unnecessarily restrictive.
    This rule is being issued as a final rule since it reduces the 
restrictions placed on employees and their families by the existing 
rule. Further, the amended rule will be made retroactively effective to 
May 25, 1995.

II. Matters of Regulatory Procedure

Administrative Procedure Act

    Pursuant to 5 U.S.C. 553 (a)(2), (b) and (d), the Board of 
Directors has found that good cause exists for waiving the regular 
notice of proposed rulemaking and 30-day delayed effective date as to 
this final rule amendment, and further making it retroactively 
effective to May 25, 1995, the effective date of the overall part 3201. 
This action is being taken because it is in the public interest that 
this rule, which concerns matters of agency organization, practice and 
procedure and which relieves certain restrictions placed on FDIC 
employees and their families, become effective retroactively on the 
effective date of the original final rule.

Regulatory Flexibility Act

    The Board of Directors has concluded that the amendment to the rule 
will not impose a significant economic hardship on small institutions. 
Therefore, the Board of Directors hereby certifies pursuant to section 
605 of the Regulatory Flexibility Act (5 U.S.C. 605) that the amended 
regulation will not have a significant economic impact on a substantial 
number of small business entities within the meaning of the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.).

Paperwork Reduction Act

    The Board of Directors has determined that the amended regulation 
does not contain any information collection requirements that require 
the approval of the Office of Management and Budget pursuant to the 
Paperwork Reduction Act (44 U.S.C. 3501 et seq.).

List of Subjects in 5 CFR Part 3201

    Administrative practice and procedure, Conflict of interests, 
Government employees, Reporting and recordkeeping requirements.

    For the reasons set forth in the preamble, the Federal Deposit 
Insurance Corporation, with the concurrence of the Office of Government 
Ethics, is amending 5 CFR part 3201 as follows:

PART 3201--SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE FEDERAL DEPOSIT INSURANCE CORPORATION

    1. The authority citation for part 3201 continues to read as 
follows:

    Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government 
Act of 1978); 12 U.S.C. 1819(a), 1822; 26 U.S.C. 1043; E.O. 12674, 
54 FR 15159, 3 CFR, 1989 Comp., p. 215, as modified by E.O. 12731, 
55 FR 42547, 3 CFR, 1990 Comp., p. 306; 5 CFR 2635.105, 2635.403, 
2635.502, and 2635.803.

    2. In Sec. 3201.103, paragraph (b)(4) is amended by revising the 
first sentence to read as follows:


Sec. 3201.103  Prohibitions on ownership of securities of FDIC-insured 
depository institutions.

* * * * *
    (b) * * *
    (4) Acquiring, owning, or controlling a security of an FDIC-insured 
depository institution or the affiliate of an FDIC-insured depository 
institution where the security was acquired by inheritance, gift, stock 
split, involuntary stock dividend, merger, acquisition, or other change 
in corporate ownership, exercise of preemptive right, or otherwise 
without specific intent to acquire the security, or, by an employee's 
spouse or minor child as part of a compensation package in connection 
with his or her employment. * * *
* * * * *
    Dated at Washington, D.C. this 17th day of June 1996.

    By Order of the Board of Directors.


[[Page 35916]]


Federal Deposit Insurance Corporation.
Robert E. Feldman,
Deputy Executive Secretary.
    Concurred in this 1st day of July 1996.
Stephen D. Potts,
Director, Office of Government Ethics.
[FR Doc. 96-17304 Filed 7-8-96; 8:45 am]
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